Auction announcement - RIKB 09 0612 and RIKB 19 0226

On July 10, the Treasury announced a planned note issuance, July through        
December 2008.                                                                  

Regarding the announcement the Central Bank of Iceland will conduct auction on  
two series of Treasury notes on Thursday, July 24 at 14:00.

The maximum total amount offered in this auction will be 10,000 m.kr. nominal   
value in the series RIKB 09 0612 and 6,000 m.kr. nominal value in the series
RIKB 19 0226. Only primary dealers in Government securities are authorised to
submit bids in this auction. They also submit bids on behalf of investors. The
minimum amount of each bid is 1 m.kr. nominal value. 

The payment and settlement date is Monday, July 28, 2008. 

For this auction, the Central Bank requests bids for the following series:


                                   Outstanding      Time to 
Series           Maturity date     amount*          maturity

RIKB 09 0612     June 12, 2009     25,505 m.kr.     1 year                     
RIKB 19 0226     Feb. 26, 2019     29,080 m.kr.     10 years 
*Nominal value                                                

Further information can be obtained from Bjorgvin Sighvatsson, International and
Market Department, Central Bank of Iceland, at +354 569 9633.